I think it's not that bad an idea.
Too many flash animators lack the ability to come up with a decent story to animate.
But there are too many "writers" out there with an idea they want animated without any work.
This would sift out all the crap and reveal the gems (through the voting system), allowing those good writers a better chance at having their work made, and providing animators with something quality to animate if they lack their own ideas.
Giving four front page slots under the audio section would also be a great way to get them some exposure.
The only potential problem is that when stories are, inevitably, far less popular than movies, games, or even audio, the writers will start to demand of the staff and users special privileges despite not returning the same kind of revenue (as some of the audio artists were a few years ago).
For instance, as nice as someone's poetry will be, I doubt more than twelve people on the entire internet will really want to read it (unless it's erotic or about video game characters).
It would be neat to see articles spotlighting NG developments (what the NG Mag originally attempted to do) being regularly published by users again.